In division 2 of the introductory part we have seen that the imagination shows a predilection for symbolic forms of expression, proportionately greater indeed, the more dreamlike it is. Now by this symbolism as we observe most clearly in hypnagogic (half dreaming) hallucinations and in dreams, three different groups of objects are represented. I. Thought contents, imagination contents, in brief, the contents or objects of thinking and imagining, the material of thought whether it be conscious or unconscious. II. The condition, activity, structure of the psyche, the way and manner that it functions and feels, the method of functioning of the psyche, whether it be conscious or unconscious. III. Somatic processes (bodily stimulations). This third sort of objects is closely coördinated with the other two. It is not capable of interesting us in the present connection so we pass it by. Therefore we arrive at two categories in which we can enroll all symbolizing works of the imagination, the material and the functional. I. The material category is characterized by its representation of thought contents, i.e., of contents that are worked out in a train of thoughts (arranged thought, imagined), whether they are mere images or groups of images, concepts that are somewhat drawn out into comparisons and definition processes, or indeed judgments, trains of reasoning, which serve as analytic or synthetic operations, etc. Since, as we know, the phantasies (dreams, reveries, even poems) are mostly inspired by wishes, it will prove frequently the case that the contents symbolically contained in them are wish images, i.e., the imagined experiencing of gratification. II. The functional category is characterized by the fact that the condition, structure or capacity for work of the individual consciousness (or the psychic apparatus) is itself portrayed. It is termed functional because it has nothing to do with the material or the contents of the act of thinking, but applies merely to manner and method in which consciousness functions (rapid, slow, easy, hard, obstructed, careless, joyful, forced; fruitless, successful; disunited, split into complexes, united, interchangeable, troubled, etc.). [It is immaterial whether these are conscious or unconscious. Thinking must be taken here in the widest possible sense. It means here all psychic processes that can have anything as an “object.”] Two typical examples will enable us at once clearly to understand the two categories and keep them separate. A. Material Symbolism.—Conditions. In a drowsy state I reflect upon the nature of the judgments that are transsubjectively (= for all men) valid. All at once the thread of the abstract thought is broken and autosymbolically in the place of it is presented the following hypnagogic hallucination: Symbol. An enormous circle, or transparent sphere, floats in the air and men are putting their heads into this circle.